First Investment Bank Ad · BSESOF:FIB
First Investment Bank Ad — Q2 2019 Earnings Presentation
35 slides from First Investment Bank Ad's earnings presentation, 2019
Slide 1: First Investment Bank Q2, 2019
FIRST INVESTMENT BANK Q2, 2019 CONFIDENTIAL
Slide 2: Table of contents
Table of contents Section 1 Country Profile and Bulgarian Economic Overview 3 Section 2 Fibank and the Bulgarian Banking System 9 Section 3 Fibank at a Glance 17 Section 4 Key Figures and Loan Portfolio 20 Section 5 Company Profile 25 CONFIDENTIAL 2
Slide 3: Country Profile and Bulgarian Economic Overview
SECTION 1 COUNTRY PROFILE AND BULGARIAN ECONOMIC OVERVIEW 3
Slide 4: Country profile
Country profile • Full name: Republic of Bulgaria • Memberships: European Union (since 2007), NATO (since 2004) • Population: 7.2 M AUSTRIA HUNGARY • Capital: Sofia SWITZ. • Area: 110,994 sq km (42,855 sq miles) • Official language: Bulgarian SLOVENIA E • CROATIA Traditional religion: Orthodox Chris
Slide 5: Bulgarian economy had strong results over past few years with high growth and low unemployment
Bulgarian economy had strong results over past few years with high growth and low unemployment BULGARIAN GDP INFLATION & KEY DRIVERS OF GROWTH ABOVE EU UNEMPLOYMENT THE BULGARIAN AVERAGE DECREASED SINCE 2012 ECONOMY HICP & Unemployment • In q1, 2019, the country's economy GDP real growth (%, 2012-20
Slide 6: Bulgarian Economic Overview
Bulgarian Economic Overview Macroeconomic indicators 2013 2014 2015 2016 2017 2018 q1, 2019 EUR M 42, 010 42, 824 45, 288 48, 128 51, 662 55, 181 12, 606 GDP Growth, % 0.9 1.8 3.5 3.9 3.8 3.1 3.5 EUR M 535.6 530.6 (15.4) 1,244.0 1, 578,2 2,547.5 654.3 Current account % of GDP 1.3 0.1 0.0 2.6 3.1 4.6
Slide 7: Macro environment: Key indicators historic development
Macro environment: Key indicators historic development q1, Indicators 2013 2014 2015 2016 2017 2018 2019 Gross domestic product (BGN million) 82,166 83,634 88,571 94,130 98,361 107, 925 24, 656 Gross domestic product, real growth (%) 0.9 1.3 3.6 3.9 3.6 3.1 3.5 - Consumption, real growth (%) (1.9) 2
Slide 8: Mid-term macro forecast
Mid-term macro forecast MACRO ASSUMPTIONS FAVOURABLE MACRO ENVIRONMENT 2018-2020F IN THE MID TERM (2018-2020F) Spring forecast ▪ Positive assumptions of the economic development during the 2019, Ministry of 2017 2018 2019F 2020F period 2018-2020; Finance ▪ Stable growth in GDP to slow down in 2018 &
Slide 9: Fibank and the Bulgarian Banking System
SECTION 2 FIBANK AND THE BULGARIAN BANKING SYSTEM 9
Slide 10: The banking sector: banks and foreign branches operated in the country
The banking sector: 25 banks & foreign branches operated in the country. Fibank in Top5 banks at June 2019. GROUP 1: TOP 5 BANKS GROUP 2: OTHER BANKS TOTAL ASSETS MARKET SHARE TOTAL ASSETS MARKET SHARE (Q2’19, BGNm) (Q2’19%) (Q2’19, BGNm) (Q2’19%) UniCredit Bulbank 19,582 18.0% Raiffeisenbank 8,030
Slide 11: Current Status of the Bank System
Current Status of the Bank System Banking Sector as at 30 June 2019 у/oy 2013 2014 2015 2016 2017 2018 q2, 2019 Bank system assets, BGN M 85 747 85 135 87 524 92 095 97 807 105 557 108 579 Growth of assets in the bank system,% 4.0 (0.7) 2.8 5.2 6.2 7.9 8.4 Bank system profit, BGN M 584.9 746.3 898.4
Slide 12: Fibank and the Bulgarian Banking System
Fibank and the Bulgarian Banking System Fibank and the Banking Sector as at 30 June 2019 in BGN M March 2019 June 2019 Growth, % Banking system 108,247 108,579 0.3% Assets Fibank 9,322 9,538 2.3% Deposits (other than from Banking system 85,922 86,479 0.6% credit institution) Fibank 8,204 8,339 1.6%
Slide 13: Fibank is top 4 player in assets, loans and deposits at June 2019
Fibank is top 4 player in assets, loans and deposits at June 2019. Committed to innovation & product leadership TOTAL ASSETS LOANS DEPOSITS Market share (Q2/19 & 2018) Market share (Q2/19 & 2018) Market share (Q2/19 & 2018) 3 4 4 CONFIDENTIAL 13
Slide 14: Increased market shares in consumer loans and retail deposits
Increased market shares in consumer loans & retail deposits at June 2019 as part of long-term strategy. RETAIL CONSUMER MORTGAGE CORPORATE DEPOSITS LOANS LOANS LOANS Market share (Q2/19 & 2018) Market share (Q2/19 & 2018) Market share (Q2/19 & 2018) Market share (Q2/19 & 2018) * 2 3 5 6 CONFIDENTIAL
Slide 15: Fibank: Market Share and Market Position - Assets, Deposits
Fibank: Market Share and Market Position Assets Deposits (other than from credit institution) Market share Market share 11.6% 10.8% 10.4% 10.2% 9.9% 9.6% 10.0% 10.5% 10.3% 9.5% 9.6% 9.6% 8.4% 8.7% 8.8% 8.8% 8.8% 7.9% 2011 2012 2013 2014 2015 2016 2017 2018 q2, 2019 2011 2012 2013 2014 2015 2016 2017
Slide 16: Fibank: Market Share and Market Position - Profit, Loans
Fibank: Market Share and Market Position Profit Loans to non-banks Market share Market share 31.6% 11.5% 10.7% 10.5% 10.3% 10.7% 10.6% 8.9% 7.7% 8.1% 9.3% 10.3% 6.2% 7.1% 7.3% 5.1% 3.5% 1.4% 2011 2012 2013 2014 2015 2016 2017 2018 q2, 2019 2011 2012 2013 2014 2015 2016 2017 2018 q2, 2019 Growth y/y
Slide 17: Fibank at a Glance
SECTION 3 FIBANK AT A GLANCE 17
Slide 18: Group structure: Clear strategic focus on business in Bulgaria
Group structure: Clear strategic focus on business in Bulgaria CORPORATE 3 KEY SUBSIDIARIES IN GROUP STRUCTURE FINANCIAL SECTOR FIRST INVESTMENT BANK AD ▪ Replication of the successful business model in Parent company Bulgaria & its adaptation to the Albanian banking market through a subsidiary bank
Slide 19: Fibank at a Glance
Fibank at a Glance Human Resources Domestic network As at 31 June 2019, Fibank clients are served in 150 outlets all over the country Regional presence Fibank has 1 branch in Cyprus * .Fibank Cyprus branch has operated since 1997, initially mainly in the area of corporate banking. Over the years, it
Slide 20: Key Figures and Loan Portfolio
SECTION 4 KEY FIGURES AND LOAN PORTFOLIO 20
Slide 21: Key Figures - Income Statement
Key Figures Income Statement BGN (thousands) FY 2015 FY 2016 FY 2017 FY 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Net interest income 252 380 307 623 247 578 250 885 59 507 68 180 61 262 59 318 56 446 Net fees & commissions income 81 470 88 498 98 851 93 546 23 821 22 395 24 922 22 763 25 220 Net
Slide 22: Key Figures - Balance Sheet
Key Figures Balance Sheet BGN M Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Liquid assets 2 202 2 399 2 423 2 378 2 306 Loans and advances to BGN M 2015 2016 2017 2018 Q2/19 5 189 5 375 5 526 5 659 5 860 8 681 8 852 8 643 9 238 9 538 customers Total assets Other assets 1 480 1 460 1 289 1 285 1 372 Due
Slide 23: Key Figures - Key Ratios
Key Figures Key Ratios Q2 2018 Q3 2018 Q4 2018 Q1 2019 Q2 2019 Overall cap adequacy 16.88% 16.28% 16.31% 15.62% 17.38% Tier I cap adequacy 16.88% 16.28% 16.31% 15.62% 17.38% CET1 adequacy 13.90% 13.38% 13.37% 12.73% 14.54% ROE (after tax) 10.66% 9.60% 18.99% 7.57% 21.91% LCR 228.04% 266.15% 251.43%
Slide 24: Loan Portfolio
Loan Portfolio Loan portfolio by sectors of economy Loan portfolio by business lines Corporate customers, 55.8% Small and medium enterprises, 13.3% Microlending Retail , 2.7% customers, 28.2% Corporate customers Small and medium enterprises Microlending Retail customers Corporate Loan portfolio as p
Slide 25: Company Profile
SECTION 5 COMPANY PROFILE 25
Slide 26: Fibank aspires to be one of the best banks in Bulgaria
Fibank aspires to be one of the best banks in Bulgaria, recognized as innovative & customer-oriented bank STRONG COMPETITIVE BUSINESS MODEL IN LINE VISION AHEAD TO GROW ADVANTAGES SUPPORTIVE WITH BANK MISSION FORWARD IN RETAIL & SME TO OUTPACE PEERS RETAIL BANKING ▪ Fibank aspires to be ▪ Emphasis o
Slide 27: Multi-channel distribution network
Multi-channel distribution network with adequate balance between physical locations & remote banking channels PHYSICAL REMOTE DISTRIBUTION DISTRIBUTION MULTI-CHANNEL CHANNELS DISTRIBUTION NETWORK CHANNELS ▪ Branch network is the ▪ New integrated e- main channel for Physical channels Remote channels
Slide 28: Cooperation with the IFC: Successful enhancement project during 2015
Cooperation with the IFC: Successful CG & RM 2015 enhancement project during 2015 Implementation Project IFC COOPERATION CORP.GOVERNANCE RISK MANAGEMENT MILESTONES DELIVERABLES DELIVERABLES ▪ In 2010, Fibank asked the IFC to prepare a diagnostic assessment ✓ Fibank introduced full CCO ✓ Fibank intro
Slide 29: Organizational structure ensures effective running of key functions
Organizational structure ensures effective running of key functions & clear separation of duties. SUPERVISORY BOARD (Chair: Evgeni Lukanov, Deputy Chair: Maya Georgieva, Members: Georgi Mutafchiev, Radka Mineva, Jordan Skortchev, Jyrki Koskelo) AUDIT PRESIDING RISK REMUNERATION COMMITTEE COMMITTEE C
Slide 30: Top Player: 25 years of stable development
Top 3 Player: 25 years of stable development with focus on innovation and customer experience Fibank Fibank issued Fibank Fibank Fibank Fibank first in Fibank Launches Fibank was Albania EUR200m realized acquired MKB the Balkans its Smart Lady welcomed established established as Eurobonds. the Union
Slide 31: Fibank customer profile: 91% retail customers
Fibank customer profile: 91% retail customers, 61% in 25-55 age group. Strong potential for cross selling CUSTOMERS GREW 1.36% YOUNG & WELL-BALANCED DURING 2018 TO REACH 1.190M CUSTOMER PROFILE Total number of customers, thousands +0.5% 1.196 1.190 1.174 1.160 1.141 2015 2016 2017 2018 q2, 2019 Sour
Slide 32: Appendix
SECTION 6 APPENDIX 32
Slide 33: Awards
Awards Best Bank in Bulgaria Quality of Service 2010 2002 Bank of the year by market share, by Bank of 2003 Bank of the Customer, 2011 2006 2012 the year association by the influential Bulgarian daily “Pari” 2008 2009 (“Money”) 2001 2011 Bank of the year by Bank of the year 2007 The best customers s
Slide 34: Awards
Awards Brand/ Products/ Web/Other awards 2007 Best public company on the Bulgarian 2008 Stock Exchange, by "Dnevnik" 2004 Financial product of the year, by International newspaper 2005 Finance Exhibition “Banks, Investments, Most Innovative Banking Product 2006 2014 (Credit and Debit Card) by Global
Slide 35: Awards
Awards “Product of the Year” – Debit card for Brand/ Products/ Web/Other awards 2018 2019 children and teenagers - category “Bank cards” 2017 “Product of the Year” b2b awards 2018 Debit card for children and teenagers - category 2018 Category “Socially responsible campaign” “Bank cards” 2017 Consume
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